Washington Times – October 21, 2015 – Senate Standing Committee on Finance has expressed serious concern over growing menace of smuggling at Pak-Iran border. The committee conveyed business community’s apprehensions over the issue, saying that Federal Board of Revenue (FBR) is responsible for increased smuggling of different items particularly Iranian petroleum products.

Committee Chairman Saleem Mandviwala said that majority of legitimate industries/sectors were facing problems due to increase in smuggling, which is damaging their businesses. “Business community feels that no effort has been made by the FBR to control smuggling. It is a fact that Iranian POL products are being sold in local market in Balochistan with impunity,” he added.

The viewpoint of Saleem Mandviwala was endorsed by some committee members that smuggling of the POL products has increased. The Committee unanimously recommended establishing of Border Security Force (BSF) to curb smuggling. Referring to a donor agency’s report, Chairman of the committee said that the smuggling under Afghan Transit Trade (ATT) stood at $35 billion during last nine years.

When asked about the exact quantum of smuggling in the country, FBR Chairman said that they did not have number of exact volume of smuggling every year. “But, the FBR is making an attempt to conduct a study to ascertain actual volume of smuggling,” he informed.

Chairman FBR Tariq Bajwa told the committee that one of the major reasons of smuggling was the Afghan Transit Trade. Due to hectic efforts of FBR, Afghanistan had principally agreed to collect its duties/taxes at Karachi port that would help reducing smuggling.

Bajwa said that the FBR seized smuggled goods worth Rs 24.4 billion last year against Rs 5.3 billion two years back. However, he said that the strength of Customs force at long and porous borders was much less. He said that the FBR seized 90062 liters of Iranian petrol and also confiscated boats in the sea during the last week. Senators Fateh Mohammad Hassni and Kamil Ali Agha said that the Iranian oil was being smuggled into Balochistan and other parts of the country in alleged connivance with a petroleum company so it should be dealt with iron hand.

To a query about Anti-Money Laundering law, FBR Chairman said that smuggling should be considered as an offence under the AML.